Can I buy with one loan and refinance soon after? - Posted by Christy

Posted by Doug on December 17, 1998 at 02:50:10:

Yes you can refinance a property right after you pruchase it… I purchased a package of 2 properties for a total of 12,000… They were both on the same street I paid cash for them and did some minor cosmetics ( about 6 thousand )… I did a no doc refinance 3 months later and pulled 23,000 out on one and 27,000 on the other… They were both 2 families with a total gross income of 1600.00 per month… Not bad huh… One problem I did encounter was alot of banks like to see some seasoning in a property… At least 1 year ownership… But if you look around you will find non conforming lenders who will jump on this and not only give you a refinance but also allow you to use the appraised value for your LTV… Alot of the banks will only lend against the sale price not the appraised value in this type of situation…
Good luck
Douglas Timko

Can I buy with one loan and refinance soon after? - Posted by Christy

Posted by Christy on December 15, 1998 at 22:34:50:

I am interested in purchasing an “uninsurable” HUD duplex . This means HUD won’t finance and I will need a loan for purchase. I am reasonably sure I can get an investor loan with 10% down. There is work I would like to have done prior to upping rents and renting it out. Work that will increase the value of the property significantly. I have a handle on how to get most of it done on credit and with delayed payment options. Can I then have the property reappraised and refinance within say 90 days? I would want to pay off the original loan and also pay the bills I have accumulated in the rehab. Also, will HUD still pay closing costs for the original purchase? Any information, thoughts or other ideas would be much appreciated.

Re: Can I buy with one loan- - Posted by Robert McNeely

Posted by Robert McNeely on December 16, 1998 at 08:11:07:

Having just bought a HUD repo last week, I was told the 5% for closing costs paid by HUD was payable to owner occupied units only.

Re: Can I buy with one loan… - Posted by Paul Macdonald

Posted by Paul Macdonald on December 15, 1998 at 23:22:39:

Yes. Freddie Mac will allow up to an 80% LTV refi. within the first year of ownership based on appraisal not purchase price.

They will want a darn good reason why the value is higher than the purchase price but are not unreasonable at all. Keep all copies of the repair bills and invoices. Take lots of photos. This is a rate and term refi. only. No cash out. So you’ll want to set up the deal carefully.

And before you do anything else get preapproved by a good broker to find out if you’d qualify for this program before you plan on this option.

All the standard oldies but goodies rules apply; ie. credit, DTI’s, etc., etc…

Good luck

Paul Macdonald

Re: Can I buy with one loan- - Posted by Christy

Posted by Christy on December 16, 1998 at 22:52:22:

Robert-Thanks for your response. I checked with the local HUD office today and they do indeed pay closing costs up to 5% for investors. Hope you can take advantage of this on your next deal!